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Board behavior’s impact on entrepreneurial orientation in public enterprises

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  • Timo Tremml

    (University of Hohenheim)

  • Sabine Löbbe

    (Reutlingen University)

  • Andreas Kuckertz

    (University of Hohenheim)

Abstract

Public enterprises find themselves in increasingly competitive markets, a situation that makes having an entrepreneurial orientation (EO) an urgent need, given that EO is an indispensable driver of performance. Research describes politicians delaying the strategic change of public enterprises when serving as board members, but empirical evidence of the impact of board behavior on EO in public enterprises is lacking. We draw on stakeholder-agency theory (SAT) and resource dependence theory (RDT) and use structural equation modeling (SEM) to investigate survey data collected from 110 German energy suppliers that are majority government owned. Results indicate that board strategy control and board networking do not seem to predict EO on first sight. Closer analysis reveals a board networking–EO relationship depending on ownership structure. Remarkably, we find that it is not the usually suspected local municipal owner who hinders EO in our sample organizations but minority shareholders engaging in board networking activities. The results shed light on the intersection of governance and entrepreneurship with special reference to the fine-grained conceptualization of RDT.

Suggested Citation

  • Timo Tremml & Sabine Löbbe & Andreas Kuckertz, 2022. "Board behavior’s impact on entrepreneurial orientation in public enterprises," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(4), pages 1183-1211, December.
    • Handle: RePEc:kap:jmgtgv:v:26:y:2022:i:4:d:10.1007_s10997-021-09592-8
    DOI: 10.1007/s10997-021-09592-8
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